Jewellery - Structural play; better earnings growth momentum ahead - ICICI Sec

Reason for report: Sector update

As highlighted in our note on jewellery sector – Near term concerns vs medium term gains dated 29th March 2016 – we believe the ongoing albeit silent structural change in favour of organised jewellers remains one of the best themes to bet on for long-only investors. We reckon, the street is overly concerned

22/08/2016 3:34:25 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Higher oil prices needed for a change in outlook - RCML

India Energy

Higher oil prices needed for a change in outlook

 As Brent oil prices move closer to US$ 50/bbl, upstream PSUs (especially ONGC) could see their gains capped by a higher cess outgo. Nonetheless, we believe OINL (and GAIL) remain the best bets considering their attractive valuations. Under-rec

22/08/2016 3:27:32 PM | Posted in Broking Firm Views - Sector Report read full news
Sugar Sector - Is the sweetness in the Sugar Sector for real? - Dynamic Levels

It has been a very sweet monsoon for sugar companies with their stock prices rallying over 50-200%. Investors have been scrambling to buy Sugar companies stock. But the question is, how long will the sweetness last? The month of June witnessed nine sugar stocks emerging as heroes of the street over the hopes of a good monsoon. The stock prices in sugar sector skyrocketed over 20% in past two mo

20/08/2016 4:26:46 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Update > Q1FY2017 earnings review - Sharekhan

Q1FY2017 results review

Auto universe maintainQ1FY2017 results review Auto universe maintains double-digit revenue growth given the uptrend in the volumes:

Sharekhan’s Auto universe maintained double digit topline growth trend for the second consecutive quarter (topline grew by 9.6% YoY in Q1FY2017). T

20/08/2016 11:23:34 AM | Posted in Broking Firm Views - Sector Report read full news
Power Sector - Muted volume in July; rising coal prices is advantage Tata Power - ICICI Sec

Reason for report: Sector update

Power generation growth for July’16 stood at just 1.5% YoY after registering strong increase of 9.2% YoY in Q1FY17, providing little to cheer about to the power sector. However, we believe the sharp increase in international coal prices is positive for Tata Power (TPWR), given its ownership of mines in Indonesia;

17/08/2016 5:32:35 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector- Domestic Steel benefitting from mercantilism - ICICI Sec

Reason for report: Sector update

Benefits of regulations restricting imports continue to help the domestic steel industry as duties now exist in multiple ways from safeguards, anti-dumping duty and also the minimum import price. This heightened mercantilism augurs well for steel players. On a cumulative basis, these duties now cover 80-90% of the produ

17/08/2016 5:07:43 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Consumption uptrend to benefit cyclicals - RCML

Recent reforms have transformed downstream companies into an attractive bet on the India consumption growth story, especially oil marketing companies (OMCs). Benefits of reforms would eventually reach upstream companies as well, but not before a sharp rally in oil prices (to +US$ 60/bbl). RIL offers one of the best plays on the improving oil demand outlook through its refining and petrochemical

17/08/2016 4:42:17 PM | Posted in Broking Firm Views - Sector Report read full news
Electricity, mining drive Jun IIP to 2.1% - July CPI worsens to 6.1% on high food prices - RCML

IIP growth climbed to an eight-month high of 2.1% in Jun’16 led by healthy electricity growth and a pick-up in mining activity. In terms of inflation, the CPI worsened to a 23-month high in Jul’16 as food inflation remained elevated (8.4%). Despite a good monsoon, we see upside risks to inflation and thus limited room for further rate cuts. However, the stance of the new RBI governo

17/08/2016 4:18:02 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pharma continues its down trend with support only around 11000 - GEPL

NIFTY PHARMA   Current Close: 11362.40    Trend : Negative

Observation

* NIFTY PHARMA is the most underperforming amongst the sectoral indices, as it closed down by 2.71% at 11362.40, as against a flattish move of -0.13% in benchmark NIFTY 50.

* Sector has been facing a strong resistance of medium te

17/08/2016 3:47:39 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds Bullish momentum - GEPL

NIFTY PSU BANK   Current Close: 2960.70    Trend : Positive

Observation

* NIFTY PSU BANK is one of the outperforming sectors amongst the indices last week, as it has moved up by 1.57%, as against a flattish move of -0.13% in benchmark NIFTY 50.

* In the last week, the Sector has created a FRESH 5 wee

17/08/2016 3:43:51 PM | Posted in Broking Firm Views - Sector Report read full news
Building Materials - Leaders Talk - Emkay Global

Key highlights of interviews

* Both the leading tile companies namely Kajaria Ceramics and Somany Ceramics are positive on higher growth in H2 FY17 given that imposition of anti-dumping duty will bring down imports further and festive season will boost demand

* Leading players in plywood industry – Century ply and Greenply are currently

15/08/2016 11:59:35 AM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector - Spectrum auction guidelines - ICICI Sec

Reason for report: Sector update

The Department of Telecommunications (DoT) released its notice inviting applications for the spectrum auction that is scheduled to start on 29-Sep’16. The key positive, though expected, is the increased spectrum availability in 1800MHz band due to spectrum harmonisation. We believe bidding intensity would be benig

12/08/2016 5:55:37 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Growth rebounds in July - RCML

Growth momentum in the Indian Pharmaceutical Market (IPM) recovered to 9.5% YoY in July after three weak months, largely due to a strong showing in the anti-infective and respiratory segments. Notably, volumes ramped up across the market despite prolonged NLEM pricing pressure. The FDC market improved led by better volumes and modest price hikes, with the respiratory segment posting strong doub

12/08/2016 5:47:31 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Consumption uptrend to benefit cyclicals - RCML

Recent reforms have transformed downstream companies into an attractive bet on the India consumption growth story, especially oil marketing companies (OMCs). Benefits of reforms would eventually reach upstream companies as well, but not before a sharp rally in oil prices (to +US$ 60/bbl). RIL offers one of the best plays on the improving oil demand outlook through its refining and petrochemical

12/08/2016 5:37:04 PM | Posted in Broking Firm Views - Sector Report read full news
Monthly Round Up - Automobile Sector - Karvy

•       Domestic Auto volumes grew by 13.2% YoY and 2.1% MoM to 1,833,976 units in Jul’16, primarily due to high growth in two wheeler segment. Industry volume performance was decent with all the segments recording positive volume growth. Though, M&HCV’s growth sharply fell and turned negative for the first time in last 2 years. 

•  

12/08/2016 5:26:16 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Q1 Review: Rev-EPS growth divergence continues - RCML

Indian IT posted a mixed Q1FY17 with only a few players (TCS, HCLT) performing well. Mid-caps put up a poor show with a miss on both revenue and margins. Revenue/EBIT/EPS growth for our IT universe stood at 13.9%/10.2%/9.4% YoY. Divergence between revenue and EPS growth continued as pricing pressures drove margins lower, more so for smaller and concentrated players. We expect earnings growth fo

11/08/2016 3:09:25 PM | Posted in Broking Firm Views - Sector Report read full news
Indian Steel Industry: Volume analysis - Consumption continues to be muted! - Emkay

Domestic steel consumption continues to be weak in July. We believe, this is due to poor demand and seasonality as well. Recent uncertainty on continuation of MIP and imposition of anti- dumping duty also might have impacted the same. Good monsoon meanwhile, keeps some hope alive on demand recovery in Q3 and Q4 FY17. Supply growth however will continue to remain strong due to recently added cap

10/08/2016 3:23:43 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal holds Bullish momentum - GEPL

NIFTY METAL    Current Close: 2517.55    Trend : Positive

Observation

* NIFTY METAL is one of the most outperforming sector amongst the indices last week, as it has moved up sharply by 3.92%, as against a positive move of 0.52% in benchmark NIFTY 50.

* In the previous week, the Sector has made a

8/08/2016 2:59:29 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Cognizant: Weak guidance; gloomy outlook for Indian IT - RCML

Key takeaways from Cognizant’s (CTSH) Q2CY16 results are: (1) Sharp downgrade to CY16 US$ revenue growth guidance from 10-13% to 8.5-9.5% YoY; (2) Q3 US$ revenue growth guidance weak at 1.8-3.0% QoQ; (3) Q2CY16 US$ revenues grew 5.2% QoQ (meeting the guidance) led by broad-based growth across service lines and geographies. The guidance revision is reflective of the bleak demand outlook an

6/08/2016 5:15:23 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Dealers check: Moderate price correction on seasonal impact - Reliance sec

All India average cement prices corrected by ~2% month-on-month (m-o-m) in July’16 mainly driven by a decline in construction activities owing to heavy rains in most parts of the country. Notably, though Northern & Central regions witnessed maximum correction to the extent of ~4- 5% m-o-m in July’16, the prices in these regions are still ruling higher (~26% yoy &~14% yoy) du

6/08/2016 5:12:46 PM | Posted in Broking Firm Views - Sector Report read full news
Automobiles Sector - PVs outshine while M&HCVs post surprise decline - ICICI Sec

Reason for report: Monthly volume analysis

Two wheelers: Unified trend in scooters, motorcycles was mixed

* Hero MotoCorp, (>85% of volumes is motorcycles) grew by 9% YoY (FY17YTD: 7% YoY) to 531,113 units amid a lower base but declined by 3% MoM basis, while TVS Motors motorcycle volumes rose strongly at 23% YoY (FY17YTD:

6/08/2016 5:05:59 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Jun’16 non-food credit growth dips to 7.9% - RCML

Non-food credit growth in Jun’16 declined to 7.9% YoY as compared to 8.4% in May. While growth in the services sector remained stable at 9.2% YoY, growth in agriculture as well as retail declined to 13.8% and 18.5% respectively. Industry credit remained weak at 0.6% YoY. Infrastructure loans declined by 2.1% YoY as power sector loans fell 7.7% and growth in the telecom sector slowed down

6/08/2016 4:18:05 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector - Monthly round up – Aug’16 - Emkay Global

* Crude oil price surged up:

Crude oil prices dropped down MoM by -6.7%, mainly due to higher supply from Nigerian and Algerian oil which was earlier used to be sold in United States. Thus, the producers are forced to drop prices. Also with no conclusion on freezing of output Russia has continue to produce more. Light-Heavy (L-H) differential broadene

6/08/2016 4:01:08 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector- A different form of MIP? - ICICI Sec

Reason for report: Sector update

DG Antidumping (DGAD) has proposed provisional antidumping duty on HR Coils/sheets/plates (look inside for further details of specs). A non injury price has been calculated for domestic players to ascertain the extent of domestic injury caused by imports between 1st of July 2015 to 31st December 2015. Similarly a normal

6/08/2016 3:54:08 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile Sector - Eyes on 2HFY17 - Reliance sec

No major surprise is observed in demand pattern other than a moderation in M&HCV sales as July is considered to be a seasonally slow month for dispatch due to (1) monsoon showers which limit consumer footfall and (2) lack of major occasions. We continue to believe that volume dispatches would be better in 2HFY17E compared to 1HFY17E on the back of (1) improvement in urban demand on rise in

6/08/2016 3:46:58 PM | Posted in Broking Firm Views - Sector Report read full news